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Two usually non-correlated stocks have been trading in two very similar chart patterns and are poised at breakout levels that project the potential for significant gains.

Cheesecake Factory

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Shares of Cheesecake Factory (CAKE) - Get Cheesecake Factory Incorporated Report have been moving lower since March in a descending channel pattern. The upper end of the pattern is drawn off the 2015 high and the series of lower highs made this year, while channel support is defined by the lower lows.

The relative strength index has spent most of this consolidation period below its center line, but it has moved back above its 21-period average and is at its highest level since the start of the consolidation. Daily moving average convergence/divergence is overlaid on a weekly histogram of the oscillator and is making a bullish crossover on both time frames. Accumulation/distribution is tracking higher, and Chaikin money flow is in positive territory.

These readings represent positive price momentum on multiple timeframes and buying interest in the stock at its current level. It's currently retesting channel resistance and formed a strong bullish hammer candle in Monday's session following that up with a positive candle in Tuesday's session. An upper candle close above resistance is a long entry point using a trailing percentage stop. A successful pattern breakout projects a target in the area of the previous April highs.

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The price action and the technical indications on the Tesla (TSLA) - Get Tesla Inc Report chart are very similar to those on the Cheesecake chart. Tesla has also been trading in a descending channel for about the last four months, with the primary difference being that the support line of the channel is extended off the 2015 highs, not the resistance line as in the previous chart.

Moving average convergence/divergence is making a positive crossover on the weekly and daily timeframes, and the relative strength index is tracking higher and above its center line. The money flow indications are positive, including the money flow index, a volume-weighted relative strength measure. Price action on Monday formed a wide bullish engulfing candle that encompassed the five previous trading sessions and is a very bullish signal. It was followed in Tuesday's session by a doji candle with the narrow opening and closing range situated near the lower end of the overall range, similar to a gravestone doji, which is usually a bearish candle.

The stock needs to make an upper candle close above channel resistance before it becomes a long candidate. The trade would require a trailing percentage stop, and the pattern projects a target price in the $55.50 area.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.